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Brent crude futures settled up nearly 9 percent after OPEC agreed to its first joint oil cut with Russia since 2001. Saudi Arabia accepted a significant concession by dropping its demand that Iran also cut output.
Prices eased slightly in early Asian trading on concerns that other producers, especially US shale drillers, could fill the gap.
The cut removes crude supply from the market, supporting energy prices, while expected shale output growth limits how far the rally can extend.
reuters.comRania El Gamal, Alex LawlerDec 1, 2016After 442 past bullish policy events, Crude Oil (Brent) moved a median +1.4% over 5 sessions (60% higher; middle half -2.0% to +4.9%), and +2.1% over 20.
After 438 past bullish policy events, Crude Oil (WTI) moved a median +0.9% over 5 sessions (61% higher; middle half -2.2% to +4.6%), and +2.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Reports that Brent settled up nearly 9% on OPEC's first joint cut with Russia since 2001 match the size of the move and point to a supply-reduction mechanism.
